Definitions for customs union

This page provides all possible meanings and translations of the word customs union

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customs union(noun)

an association of nations to promote free trade within the union and set common tariffs for nations that are not members

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Customs union

A customs union is a type of trade bloc which is composed of a free trade area with a common external tariff. The participant countries set up common external trade policy, but in some cases they use different import quotas. Common competition policy is also helpful to avoid competition deficiency.
Purposes for establishing a customs union normally include increasing economic efficiency and establishing closer political and cultural ties between the member countries.
It is the third stage of economic integration.
Customs unions are established through trade pacts.